Cheap Oil Will Cause Economic Collapse

[Taco]

Cheap oil is great for countries that don't have an oil industry but its an economic disaster for industrialized countries. Here's what financial analysts will never tell you.

Cheap Oil Edging Us Toward Global Economic Collapse
http://www.forbes.com/sites/bryanrich/2 ... 5b7176f5c4

Most people think modern technology has made us more efficient in our industries and our economy. However, this is not the case. Our modern food production and distribution system now consumes ten times more energy than it provides. EROI stands for Energy Returned On Invested.



A minimum EROI value for a modern society is 20/1. For citizens of an advanced society to enjoy a prosperous living, the EROI of energy needs to be closer to the 30/1 ratio. The U.S. oil and gas industry EROI fell below 30/1 46 years ago (after 1970). Not surprisingly, the US dollar was soon taken off the gold standard shortly afterwards in 1971 with the Bretton-Woods agreement. The reason are we seeing such a rapid and volatile change in the markets recently is due to rapidly falling EROI and oil price. Currently, U.S. shale oil production has a EROI value of 5/1 (or less), which means we will soon no longer be able to afford the basic necessities.
In addition, the rapidly falling EROI of U.S. and Global oil will cause serious trouble for food production going forward. From this point onwards retrieving the present financial fiat system is no longer doable. Within a few years from now the Oil Industry as we know it will disintegrate.

[Taco]

Debt At The Big 4 Oil Companies Hits A Record $184 Billion

[Moretorque]

taco what do all those oil companies have in common ? they are controlled by the same people who control the counterfeit bills we use we call money.............

Just like that the debt can magically go away!

[Taco]

The problem is simple. The cost of extracting oil from the ground keeps going up and the price of oil keeps going down. This will not end well.

Scotland North Sea Oil Revenues Collapse By Nearly 100%
http://www.independent.co.uk/news/busin ... 07756.html

[Tsar]

The problem is simple. The cost of extracting oil from the ground keeps going up and the price of oil keeps going down. This will not end well.

Scotland North Sea Oil Revenues Collapse By Nearly 100%
http://www.independent.co.uk/news/busin ... 07756.html

I hope that this November and December is the beginning of a 1933 Great Depression style collapse with everything including gold and silver reaching twenty year lows. Then after a brief period of a massive collapse of everything except fiat currency, then a few months to several months later the true collapse begins with fiat currencies suffering hyperinflation and returning to near $0.00 in perceived value and gold and silver soaring. In that scenario I would be in the upper-class within days while most of the people across the world who have no gold and or silver would be impoverished when the new economic order of the world is established. If gold reached $400 an ounce and silver reached $8 an ounce I would use all my money and even max out some credit cards to buy them. Because the endgame is deflation typically precedes hyperinflation. I could explain that more in detail but the complexity would be so long I will leave it as a single sentence.

However, in general, collapsing oil prices are a positive to economies. The only thing that is not happening is that people have too much debt and some costs are extortionate and taxes are also too high along with home prices, so all people's money gets siphoned away and people don't get raises. Not to mention part-time work or minimum wage work or mass-unemployment. Higher oil prices would kill the economies more than lower oil prices would.

[Taco]

The problem is simple. The cost of extracting oil from the ground keeps going up and the price of oil keeps going down. This will not end well.

Scotland North Sea Oil Revenues Collapse By Nearly 100%
http://www.independent.co.uk/news/busin ... 07756.html

However, in general, collapsing oil prices are a positive to economies.

Low oil prices are a positive for any emerging market economy that doesn't have an oil industry like the Philippines. However, its worst thing that can happen for western industrialized economies. Oil creates more high paying jobs than any other industry.

[Tsar]

Low oil prices are a positive for any emerging market economy that doesn't have an oil industry like the Philippines. However, its worst thing that can happen for western industrialized economies. Oil creates more high paying jobs than any other industry.

Yes but most of those high paying jobs are already taken or reserved for elites. So I don't care anymore if all those high paying jobs were to disappear or the workers be forced to take a 50%-80% pay cut. I'd like to see that.

The only thing better than that is for the US Dollar, British Pound, Japanese Yen, and Euro to collapse like dominoes, triggering a contagion which also collapses the Swiss Franc, Canadian Dollar, Russian Ruble, Indian Rupee, Chinese Yuan, South Korean Won, and all the Middle Eastern oil rich currencies. The Cayman Islands dollar would most likely also collapse. I'm sure other currencies would also collapse in the process. Then when all the major currencies and semi-major currencies collapse the millionaires and billionaires who were keeping their money in expensive condos, in bank accounts, or secret bank accounts will see their fortunes disappear. Many major corporations and businesses will also be forced into bankruptcy. It will be a Global-Style collapse worse than the Soviet Union's collapse. Only America will probably take several decades to crawl itself of the bottomless abyss it dug itself into. Only the Rothschilds and people that are part of the Rothschild's Cabal such as George Soros and many others will come out remaining elites.

It's easy to see how the insider elites are buying farmland, freshwater, gold, fine art, and other things with intrinsic value which remains before and after a collapse. Other rich people have left America for New Zealand in relatively massive numbers considering the population of mega-millionaires and billionaires. New Zealand: low population, mostly white and Asian, vast amounts of farming and fishing industry, some oil production, its an island, little chance for rioting because they can maintain their order and food production. Easy to see why the elites would choose New Zealand as the place to fortify themselves.

Once things start to get bad in America and the Federal Reserve can't bailout any bank or business, expect bail-ins and also capital controls as people try to flee the dollar. Capital Controls+Hyperinflation= The Real Fun Begins.

[Moretorque]

On the X22 Spot Light Report Dave just uploaded a new interview with a wall street trader who hekped set the computer systems up they use to manipulate the world.

He basically says the central bank is in complete control and they have a unlimited supply of #'s to manipulate the world and all real economics of the past are out the window because they control most of the worlds means of production as well as most of the worlds resources as well.

When you break down all these corporations world wide you will find the same people own controlling stocks in them all so that is how they keep the game going, it's when the masses figure the con out and how it is detrimental to their way of life does the can game end other than that they just keep dealing the supply of #'s to rule over us.

This is why they are attempting to dumb the whole world up as quick as possible.......so most cannot figure it out.

[Taco]

Mexico’s economy is showing ominous signs of stagnation. If Pemex’s financial health continues to deteriorate, it could be a major source of risk for the banking sector in the months ahead.

Pemex Oil Collapse Threatens Biggest Banks in Mexico
http://wolfstreet.com/2016/08/26/pemex- ... in-mexico/

[cdnFA]

On the X22 Spot Light Report Dave just uploaded a new interview with a wall street trader who hekped set the computer systems up they use to manipulate the world.

He basically says the central bank is in complete control and they have a unlimited supply of #'s to manipulate the world and all real economics of the past are out the window because they control most of the worlds means of production as well as most of the worlds resources as well.

When you break down all these corporations world wide you will find the same people own controlling stocks in them all so that is how they keep the game going, it's when the masses figure the con out and how it is detrimental to their way of life does the can game end other than that they just keep dealing the supply of #'s to rule over us.

This is why they are attempting to dumb the whole world up as quick as possible.......so most cannot figure it out.

I know a guy who got a job on wall street and 6 months later his dog got space herpes. True story, it's even on the internet, look to your left.

[nomadphilippines]

is the bubble about to burst?

[Citizen]

Why? There is no real market anymore. Everything is a sham. The oil companies and their overpaid employees are all servants of the controllers. The oil price will be set at whatever the controllers feel is best for the world economy. It is the same with all commodities and all goods. Servants of the controllers destroyed the free people. For the servants being free is freedom is from want and the freedom to buy.

[nomadphilippines]

so confused

[Citizen]

so confused

too bad for me then.